Boulder's 'I and love and you' embraces dynamics in pet industry

Penny, the "I and love and you" office dog, is petted by Stacey Benham, left, and Meredith Johnson during a meeting at the company's Boulder headquarters last week. (David R. Jennings / Daily Camera)

When Revelry Brands acquired a stake in Only Natural Pet Store LLC, a fellow Boulder-based company, officials for the investment firm saw the potential to create a new wholesale brand.

Only Natural Pet Store and Revelry — a company that fueled the evolution and expansion of Evol Foods — wanted to create a "super-premium" and "fresh, hip" brand that could become a top dog in the pet products business.

What resulted was "I and love and you," a manufacturer of a variety of pet products created to be wholesome and healthful for cats and dogs, said Steve Ball, chief executive officer of the Boulder-based firm.

"I and love and you" plans to build off its quick start — which included placement in Whole Foods stores and a tripling of its sales from 2012 to 2013 — after raising nearly $12 million.

"I know clear and well the value for healthy nutrition for dogs and cats and, ultimately, the ramifications for poor nutrition," Ball said.

The growth capital investment from Chicago-based Winona Capital Management and Revelry Brands will allow the firm to build its executive team, bolster product development efforts, expand to a new facility and prepare for a planned national launch with a yet-to-be-named retailer.

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That launch, which is expected to be unveiled this week, could triple or quadruple "I and love and you's" distribution, which currently is to about 1,200 stores and retailers, including Whole Foods, Sprouts and Petco's Unleashed stores, said Brendan Synnott, founder of Revelry Brands.

'A real void'

The company initially targeted the grocery aisles, where one-third of the industry's sales take place, Synnott said.

"If Blue Buffalo could build a $1 billion business with a small segment of the market (of primarily Petco and PetSmart), imagine having a natural brand in the biggest segment," he said.

Officials for "I and love and you" also saw a lack of branding in the grocery store aisles that connected with the values of some pet products consumers, Ball said.

"We thought that was a real void," he said.

The name "I and love and you" — a tip-of-the-hat to the Avett Brothers' song of the same name — is meant to embody the bond between human and pet and combat the "sea of sameness" within the pet products industry, Ball said.

The 65 products under the "I and love and you" brand range from kibble and treats to supplements and medications. The idea was to create a brand that would cover all elements of pet care and products that would be on the leading edge of trends such as dehydrated raw food, Ball said.

The products are formulated by holistic veterinarians.

"We feel natural is a standard, but holistic natural is the highest standard," Ball said.

The branding, much like the furry friends the products serve, is meant to be playful with the inclusion heart-shaped kibble and names such as "My Darn Aller Geez," "Hey Nice Grass" and "Oh My Cod."

The labeling for the products' ingredients and functional benefits is intended to be simple and easy to understand.

"We're making it easier and more fun (for pet owners) to keep their pets healthy and happy," Ball said.

'Fear of bad product'

One of the most significant trends in the pet products industry involves the rise of labels that indicate the product was made in the United States or free of ingredients from China, said Rick Polito, senior editor for the Nutrition Business Journal, a magazine published by Boulder-based New Hope Natural Media.

In 2007, melamine-tainted pet food exported from China resulted in the deaths of thousands of dogs and cats. Since that time, online pet-owner communities such as DogFoodAdvisor.com have grown as people seek information on recalls and ingredients, Polito said.

"I think what is growing natural and organic is the fear of bad product," he said.

In 2012, the natural and organic pet food category grew 13.5 percent to $1.64 billion, according to New Hope's NEXT Forecast data. The overall pet food industry grew 4.5 percent.

Most of that growth is occurring at the independent and specialty pet store level, Polito said. Natural and organic pet products are starting to get some broader exposure as big-box retailers such as Walmart and Target expand their natural offerings.

"It's natural that people would follow that market into the mainstream, too," Polito said. "All those same concerns are going to be present in people who shop in Target as well."

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